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Serica Energy confident over funding

Serica Energy (LON:SQZ) said today it had enough funding for its 2013 exploration programme and was confident it can raise more to finance the North Sea Columbus field development.

Serica said the final approvals are expected at Columbus and construction is projected to commence on schedule in 2013 with a target to achieve first gas production mid-2015.

Financing proposals for its share of development costs are being evaluated, it added, and will be put in place when final sanctions for the project are given.

Also in the UK North Sea, a 3D seismic survey is planned to appraise gas prospects in the York area while in the East Irish Sea, Serica expects to complete the Doyle farm-out and site survey prior to drilling.

Elsewhere, in Namibia, full results from the Luderitz Basin 3D seismic survey are due in the second half of 2013 and a drilling decision will be made.

The preliminary review of the fast-track data was very encouraging but fuller evaluation is necessary to complete the full-scale processing and interpretation, which is currently underway with BP.

In Morocco, a two well programme will start in the fourth quarter. The operators of Serica's Sidi Moussa and Foum Draa blocks, Genel Energy and Cairn Energy, have put forward proposals for one well to be drilled in each of the two blocks.

In Ireland, Serica is looking for a partner for the Muckish prospect, one of 12 targets in the Rockall Basin, while at Slyne, Serica and RWE plan a farm-out campaign later in the year.

Tony Craven Walker, Serica’s chairman and interim chief executive, said: “Our resources, although limited, are sufficient to meet our current programme and we are confident that we will be able to raise the funding required for our share of the Columbus field development when that is needed.

“Serica's exposure to the major exploration potential of largely unexplored Atlantic Margin basins offshore Ireland, Morocco and Namibia, coupled with a field development and undrilled prospects in the maturer UK, provides the opportunity for both steady growth and transformational success and we look forward with confidence to 2013."

Philip Whiterow
Philip Whiterow


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"Our goal and guideline has been to build a solid platform of production revenue from which to launch programmes that are more exploratory in nature,” said Alden McCall, chief operating officer.

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